Enel (ENEL) Q4 2024 earnings summary

Executive summary

• Achieved all 2024 targets with strong financial and operational performance, driven by growth in Iberia, US, and LATAM, and improved financial flexibility through deleveraging and asset disposals.

• Regulatory improvements and advocacy actions supported investment and value creation, including renewal of key concessions in Italy and positive developments in LATAM, Spain, and Brazil.

• Shareholder remuneration increased, with a proposed dividend per share of €0.47 for 2024 (up 9% year-over-year), a 70% payout, and a new share buyback program up to €3.5 billion.

• Deleveraging completed, improving balance sheet flexibility and supporting future profitable growth.

Financial highlights

• Ordinary EBITDA reached €22.8 billion, up 4% year-over-year and at the top of guidance; net ordinary income was €7.1 billion, up 10% year-over-year.

• Net income was €7.0 billion, nearly double the 2021-2023 average; revenues totaled €78.9 billion, down from €95.6 billion in 2023.

• Net debt reduced by over €4 billion to €55.8 billion, with Net Debt/EBITDA at 2.4x, providing over €10 billion in additional financial flexibility.

• FFO normalized at €14.6 billion, exceeding 25% of net debt; FFO/Net Debt stable at 25%.

• Dividends paid totaled €5.4 billion.

Outlook and guidance

• 2025 guidance confirmed, expecting 3% EBITDA growth versus 2024 rebased results; 2025-2027 plan targets €43 billion in gross investments, focusing on grids, renewables, and customer segments.

• 2027 guidance: ordinary EBITDA €24.1–24.5 billion, net ordinary income €7.1–7.5 billion, minimum annual DPS €0.46.

• Dividend policy for 2025-27 set at a minimum €0.46/share, with upside potential linked to earnings trajectory.

• Grids expected to see €800 million EBITDA increase, with Italy projected at 10% growth; LATAM returning to growth on improved macro and regulatory environment.

• Integrated margin to consolidate renewable generation gains, offset by market normalization and flat thermal generation.